During this trying time there is a lot of information out there about Covid-19 and how it can affect you financially. There are options for people to receive emergency funds from both the federal government and the province.
You can apply for the CERB (Canada Emergency Response Benefit) through either Service Canada or the Canada Revenue Agency (CRA) but not both. CERB is there for Canadians who have stopped working because of Covid-19. If you are eligible you would receive $500 a week for up to 16 weeks.
One of the main questions regarding CERB is “are there taxes on CERB”? The answer is yes. The government is not withholding any tax on the $2,000 a month benefit. The amount you will be taxed depends largely on how much income you earn overall in 2020. The income you receive from CERB and from your job will be taxed in the same way. You may want to consider arranging with your employer to have extra tax deducted from your pay.
For BC residents there is also the BC Emergency Benefit for Workers, which is a tax free, one-time payment of $1,000 for BC residents whose ability to work has been affected due to Covid-19. If you qualify for the CERB you will qualify for this benefit as well. You can apply for this benefit at the BC government website.
For residents of other provinces there are a few sources for help, such as payment deferrals for utilities and student loans. There are also several bank programs and solutions not to mention changes in how you are taxed (such as the education property tax freeze in Alberta.)
In Ontario there is emergency assistance. In most cases if you are eligible for emergency assistance in Ontario you will make approximately $733 dollars a month. Please note that you are not eligible for this emergency assistance if you are getting assistance from Ontario Works or the Ontario Disability Support Program.
In Saskatchewan there is the SSBEP (Saskatchewan Small Business Emergency Payment) which can help small and medium sized enterprises directly affected by government public health orders related to Covid-19. Payments are paid based on 15 per cent of a business's monthly sales revenue, to a maximum of $5,000. There is also a three-month relief from penalty
and interest charges for Saskatchewan businesses who are unable to remit their PST due to cash flow concerns.
Residents of Manitoba can look to the Manitoba Protection Plan for several programs and resources to help during this trying time including cash flow tax relief and the rent increase freeze.
Check your provinces official website to see what is available to you or contact us for more information regarding help in your province!
We are here to help you apply for any of the available programs – arrange an appointment or send us a message through CONTACT US.